Sullivan IDA asked to OK tax breaks for Concord project

Wednesday

Mar 13, 2013 at 2:00 AMMar 13, 2013 at 7:16 AM

KIAMESHA LAKE — Supporters of resort developments at the Concord packed Thompson Town Hall Tuesday to urge the Sullivan County Industrial Development Agency to swiftly approve millions in tax breaks to the operators.

Victor Whitman

KIAMESHA LAKE — Supporters of resort developments at the Concord packed Thompson Town Hall Tuesday to urge the Sullivan County Industrial Development Agency to swiftly approve millions in tax breaks to the operators.

The IDA held simultaneous public hearings on three separate applications from Empire Resorts and Concord land owner EPR Properties.

Speakers overwhelmingly urged the IDA to approve the tax waivers, saying the project will jump start the economy and create more than 1,000 permanent jobs and about 1,200 union construction jobs.

Speakers included small business owners, representatives from three construction unions and Sullivan's economic development officials. Some 28 people also submitted letters of support.

"It doesn't get better," county Legislature Chairman Scott Samuelson said. "We couldn't have dreamed this. I support this 1,000 percent."

A few voices in the crowd of roughly 70 people argued that publicly-traded companies don't need the maximum allowable incentive offered by the IDA. One speaker called this a case of extreme "corporate welfare."

The companies also hinted they might attempt to issue bonds which carry some public expense and risk. Empire is anticipating reaping two-thirds of the revenues from the video gaming machines.

"Can anyone seriously doubt that they can afford to pay their share of local taxes in the same proportion as the rest of us," Liberty attorney Ron Lichman said as he spoke out against the breaks. "We can have our cake and eat it too."

The companies are asking for in excess of $200 million in breaks. The sales and mortgage tax waivers would come at the beginning of the projects and the bulk of the property tax breaks would be spread over 16 years.

Empire subsidiary Monticello Raceway Management Inc. plans to lease land from EPR and invest $365 million to build a racino with 2,150 video gaming machines, a 248-room hotel and half-mile harness track, among other amenities.

EPR, a real estate investment trust, plans to announce this spring a themed hotel and waterpark. It is also upgrading The Monster golf course and planning other major projects on the 1,735-acre parcel. While no ground breaking date has been set for any project at the Concord, Empire's is the furthest along in the approval process.

Empire's Chief Executive Officer Joseph D'Amato said the tax abatements are needed "for the successful financing of this project."

He also noted that the casino business was now highly competitive and saturated. Other competing areas are offering enhanced incentives.

D'Amato said the breaks would make construction financing more attainable. "The house always wins is not always true any more," he said.

The IDA board is expected this month to convene a special meeting to consider approving the request.